Wells Fargo analyst Aaron Rakers maintained a Hold rating on Seagate Tech (STX – Research Report) yesterday and set a price target of $120.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Aaron Rakers’s rating is based on Seagate’s strategic move to acquire Intevac, which represents a significant step towards vertical integration within its hard disk drive (HDD) supply chain. This acquisition will allow Seagate to integrate advanced thin-film processing technology into its manufacturing process, potentially enhancing its production capabilities. However, while this move could strengthen Seagate’s position in the market, it also raises questions about the future relationship with other customers, such as Western Digital, who might be affected by this integration.
Furthermore, despite the potential long-term benefits of the acquisition, the current market conditions and the early stages of the HAMR upgrade cycle make it challenging to predict the immediate impact on Seagate’s financial performance. The reliance on Intevac for a significant portion of its revenue and the competitive landscape, including competitors like Anelva, add layers of uncertainty. These factors contribute to Aaron Rakers’s decision to rate Seagate’s stock as a Hold, indicating a cautious approach considering both the opportunities and risks involved.
STX’s price has also changed slightly for the past six months – from $98.200 to $101.480, which is a 3.34% increase.